Thinking About College Funding

post by jefftk (jkaufman) · 2021-09-09T19:20:05.053Z · LW · GW · None comments

A few years ago I wrote about how, if you're trying to decide between direct work and earning to give, the college price discrimination system of financial aid can push towards direct work. It's a bit of a niche thing, since it really only applies if:

Now that we have a third child I'm thinking about this again, and in our particular case I now think we are pretty unlikely to take the direct-work-minimize-income approach:

This also means that a 529 college savings plan probably makes sense for us. This is an investment option where gains are not taxed as long as funds are limited to educational expenses. It's a lower priority than donations or retirement savings, but if we have additional money left over the lack of capital gains tax is nice.

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